In the midst of the weakening dollar, rising oil prices, a widespread credit crisis, the New Year sees Gold reaching an all time high of $900+ an ounce. Moreover it looks like this upward trend is going to continue given the growth in emerging market economies.
The popular yellow metal sure seems to be back in the market and here to stay. Considering it as a safe haven, something you can always bank on, has been the allure towards gold for a long time. When everything else seems risky, gold stands its ground, as it is seems to be something of value that never goes out of fashion. But probably the biggest force pushing the bullion market ahead is the weakening US dollar.
Analyst Catherine Gignac feels that in terms of gold production, supply is restricted, and though there could be developments in a couple of years, pressures and various evaluations could lengthen the time period. “The dramatic rise in the gold price in recent weeks is likely to pull back, however, a higher base platform has been established,” Ms. Gignac said, adding that a $200 per ounce (plus or minus) swing for gold prices is expected.
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